Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
$ c* ~8 B; z' U( s1 y; Lexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
3 E8 ?& f1 p9 V2 l' q6 G3 @these oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
0 q+ `! i5 F" S9 MEXXON, BG, BP, Cheveron ....xyz.. oils
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, L2 g8 w; t4 b4 T# L' s0 KRecently OPEC reduced crude oil production twice over just a few
1 V! \  E3 t$ a( ?2 i3 a& Jmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
+ j3 c& u/ Q7 m" W) q. f& {6 n' @A year ago these things would have spiked the price of crude oil by at
; p$ {9 h# J  F4 n  k" }least $50.00 per barrel. Today, oil price declined by a record amount.

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* }: |) r& f! B5 s  v+ W& e$ FThere are several reasons the price of oil is decreasing in the face
5 [, Z7 c3 ^; q- |  i' }9 M& {- z2 M8 vof so much news. These reasons are:

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: v5 `6 {) ?+ ^# o9 j1. New oil has been found in Canada, Montana, North & South Dakota and
  Q$ B) \1 Y7 K" kin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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' o& Y% G5 K; t9 j7 \2 V; K2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
, [+ y$ v( p( o. i5 m6 e/ u% abeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
( E0 i/ I3 K. z5 pfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
" }) E- t' m  }6 a; X+ |' wracing to produce bio fuels.
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% U, {/ G  [5 v# M" |5 R: C5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
+ b% Z- R; ?4 G4 D9 P) {. wcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
: k4 M" z- {& g9 _7 N; N: r2 I4 \producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
# T: _5 s0 G( X0 c. |construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
6 T7 s7 N6 S7 d) t, j1 i, gwill replace oil.
; h% G$ b4 }- ]! c) N0 S' Z

( B+ `% l' S8 U3 R7. Every company in any form of transportaion business is replacing
' ^9 t: S. m5 ?, q2 s% [older equipment such as trucks, airplanes, train engines, ships, etc.
! p. ]% R) @# j# T; zwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
; |. X6 e- ~7 _8 e; e( Oequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
) g' l# J/ k/ r2 g6 W' Ufuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
; ~- A+ E. L! u9 [capture methane gas from landfills. This is a huge source of gas
" ?6 x* J* E$ Q5 P" uavailable at very little cost or risk. The gas is displacing crude
3 ~% j# x- a, L& I& foil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
: Q7 J2 M, E" F" ~+ m5 O. _produced as a byproduct is sold to oil companies for injection into
! ]/ N) G1 Z. E4 _oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
/ G4 Z& H3 j1 P! k  A8 Z+ bsource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
4 `8 I: }% w! y  v: a+ uprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
' C# H$ I4 j" @6 v9 Y2 dto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
. h; ?; L- d1 x' y( N* T7 ^value .....
& i8 |2 T- m# ?/ Z! B7 hIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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' T! @/ P7 v$ ^: U+ @9 cThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only